Economics Answers

What factors have influenced the demand for motorbikes / scooty in the last few years in Kathmandu? Focus your attention on income, attitudes, and the prices of other products. Explain with graph how changes in these factors would either increase or decrease the demand for motorbikes/ scooty.

With open market operations the fed buys of sells fed funds and government debt in the open market. If the Fed buys a large amount of treasury bills and bonds what change would you expect in the money supply in ingest rates and in inflation. Would money supply increase or decrease. Would Intrest rates increase or decrease. Would inflation increase or decrease. Why and how is money supply changing.

critically examine how revealed preference theory relates to consumer demand

a. What factors have influenced the demand for motorbikes / scooty in the last few years in Kathmandu? Focus your attention on income, attitudes, and the prices of other products. Explain with graph how changes in these factors would either increase or decrease the demand for motorbikes/ scooty.

The economy is in long-run equilibrium. Draw a basic aggregate demand and supply graph (with SRAS and LRAS) that shows the economy in short and long-run equilibrium.

Fort Inc., competes against many other firms in a industry. Over the last decade, several firms have entered this industry and, as consequences, Fort is earning a return on investment that roughly equals the interest rates. Furthermore, the four-firm concentration ratio and Herfindahl Hirschman index are both quite small. Based on this information, which market structure best characterizes the industry in which Fort competes? Explain the characteristics this market structure and what happens to the Fort Inc’s profit in the short-run and long-run. What are your strategic advices to Fort Inc. to sustain its profit in the long-run?

if the price of tea declines how would it affect the equilibrim price and quantity for coffee

Good(X): 1,2,3,4,5 (increasing)
Good(Y): 12,8,5,3,2(decreasing)

"Marginal rate of substitution (MRS) of X for Y will go on diminishing." I have a question on this sentence that is according to Good(X) and Good(Y) it is clearly seen that Y is decreasing or diminishing and X is increasing but the sentence tells 'MRS of X will go on diminishing' what is this? Could you please tell me on what basis and how can we say X is diminishing?

Kofi and Ama have 120 hours each and they can spend their time planting Rice or Maize.
You are told that the opportunity cost of producing one bag of rice for Ama is 1/3 bag of
maize and the opportunity cost of producing one bag of rice for Kofi is ¼ bag of maize.
Ama can produce 6 bags of maize when she uses all her resource for maize production
and 1Kofi can produce 8 bags of rice when he uses all his resource .Use this to answer
the following questions:

Suppose that a foreign company withdraws money from its account in a foreign country, buys 1 million US dollars and deposits this into the US banking system. The target reserve ratio is 10% and there is no currency drain from the banking system.
ALL BANKS HAVE
Reserves $90 million,
deposits: 900 million
Loans: 710 million
securities 100 million

What are the target reserves and what are the excess reserves?
After 1 million deposit what are the target and excess reserves?
All excess reserves are used to expand loans, the final increase in the money supply will be _?_ times the new 1 million deposit, which is equal to _?_
What is the final increase in loans?